Jadwa REIT Al Haramain (4332.SR) Q2 2024 Earnings Report

Jadwa REIT Al Haramain Fund delivered a solid QQ2 2024 with a sharp revenue uplift and strong profitability metrics, supported by high asset utilization within its Haramain hotel portfolio. Revenue of SAR 28.66 million translated into a gross profit of SAR 20.13 million and net income of SAR 10.09 million, yielding an impressive net margin of 35.21% and an EBITDA of SAR 18.99 million. The quarter benefited from robust operating performance, evidenced by an operating margin of 47.96% and an EBITDA margin of 66.27%, underscoring the earnings power of the fund’s core assets. Cash generation remained healthy with net cash from operating activities of SAR 28.71 million. Free cash flow matched正在 operating activity levels at SAR 28.71 million, while dividends paid totaled SAR 8.58 million, reflecting a payout policy consistent with Jadwa’s approach to regular distributions. However, cash was materially affected by a foreign exchange swing of approximately SAR -20.0 million, contributing to a modest end-of-period cash balance of SAR 4.51 million. From a balance-sheet perspective, the fund holds a large asset base (total assets SAR 735.3 million) with a disciplined leverage profile (long-term debt SAR 214.35 million; debt to equity 0.424; debt ratio 0.292). The equity base stands at SAR 506.02 million, reinforcing financial resilience to fund ongoing capex needs and potential value creation through asset optimization. The contracted dividend policy—distributing at least 90% of net profit (excluding capital gains)—supports a meaningful yield framework, with current indicators pointing to an approximate dividend yield of 2.1% versus regional peers. Outlook considerations center on portfolio stability in a tourism-reliant market. The Haramain-location focus remains a strength given the Holy Cities’ enduring visitor demand, butמור macro tourism cycles and FX exposure remain key sensitivities. Absent explicit forward targets from management in QQ2, the investment case rests on steady cash flows, prudent capital deployment, and ongoing asset maintenance to sustain occupancy and ADR gains over time.